During the past week, GuruFocus recognized three companies as dividend growers. In order to be qualified for this list, the company had to:
- Have a dividend of greater than 3%.
- Have a strong history of stable and increasing dividends.
- Maintain Guru ownership.
- Have a market cap of greater than $10 billion.
The following three companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.
A comparison of the companies’ historical dividend growth:
ConAgra Foods (CAG)
On April 3, ConAgra Foods declared a dividend of $0.250 per share, representing 3.23% dividend yield for the company. This dividend is payable on May 30 to shareholders of the record at the close of business on April 30, 2014.
The company’s historical dividend growth is as follows:
- 10-year: -0.90%
- 5-year: 7.40%
- 3-year: 7.80%
ConAgra Foods is a packaged food company, supplying frozen potato and sweet potato products, as well as other vegetable, spice, and grain products to a variety of restaurants, food service operators and commercial customers.
ConAgra Foods’ historical revenue and net income:
The analysis on ConAgra Foods reports that the company has issued $4 billion of debt over the past three years, its dividend yield is close to a 1-year high and its P/B and P/S ratios are trading at historical lows.
The Peter Lynch Chart suggests that the company is currently overvalued:
ConAgra Foods has a market cap of $13.05 billion. Its shares are currently trading at around $30.98 with a P/E ratio of 18.60, a P/S ratio of 0.76 and a P/B ratio of 2.39. The company had an annual average earnings growth of 5.30% over the past ten years.
Banco De Chile (BCH)
On April 1, Banco de Chile declared a dividend of $2.964 per share, representing 3.90% dividend yield for the company. This dividend is payable on April 8 to shareholders of the record at the close of business on March 27, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 5.20%
- 5-year: 10.20%
- 3-year: 8.00%
Banco de Chile is engaged in commercial banking in Chile, providing general banking services to a diverse customer base that includes corporations and individuals. It is a full-service financial institution providing, directly and indirectly through its subsidiaries and affiliates, a variety of credit and non-credit products and services to all segments of the Chilean financial market.
Banco de Chile’s historical revenue and net income:
The analysis on Banco de Chile reports that the company has issued CLP3.9 billion of debt over the past three years, its revenue per share has been in decline over the past three years and its P/E, P/B and P/S ratios are all trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
Banco de Chile has a market cap of $11.82 billion. Its shares are currently trading at around $76.09 with a P/E ratio of 12.20, a P/S ratio of 4.25 and a P/B ratio 2.94.
China National Offshore Oil Corporation (CEO)
On April 1, CNOOC, or China National Offshore Oil Corporation, declared a dividend of $3.713 per share, representing 4.25% dividend yield for the company. This dividend is payable on July 11 to shareholders of the record at the close of business on June 5, 2014.
The company’s historical dividend growth is as follows:
- 10-year: 0.00%
- 5-year: 6.00%
- 3-year: 3.20%
China National Offshore Oil Corporation is a national oil company in China. It is the third-largest national oil company in China, following CNPC and China Petrochemical. The CNOOC Group focuses on the exploitation, exploration and development of crude oil and natural gas in offshore China.
CNOOC’s historical revenue and net income:
The analysis on CNOOC reports that the company has issued CNY43.7 billion over the past year, its dividend yield is close to a 5-year high and the company’s P/S, P/B and P/E ratios are all trading at historical lows.
The Peter Lynch Chart suggests that the company is currently undervalued:
CNOOC has a market cap of $70.59 billion. Its shares are currently trading at around $158.12 with a P/E ratio of 6.90, a P/S ratio of 1.80 and a P/B ratio of 1.39. The company had an annual average earnings growth of 22.80% over the past ten years.
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